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Jhu Jian Catering Co (ROCO:7723) Financial Strength : 4 (As of Jun. 2024)


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What is Jhu Jian Catering Co Financial Strength?

Jhu Jian Catering Co has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Jhu Jian Catering Co's Interest Coverage for the quarter that ended in Jun. 2024 was 6.13. Jhu Jian Catering Co's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.22. As of today, Jhu Jian Catering Co's Altman Z-Score is 3.20.


Competitive Comparison of Jhu Jian Catering Co's Financial Strength

For the Restaurants subindustry, Jhu Jian Catering Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Jhu Jian Catering Co's Financial Strength Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Jhu Jian Catering Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Jhu Jian Catering Co's Financial Strength falls into.



Jhu Jian Catering Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Jhu Jian Catering Co's Interest Expense for the months ended in Jun. 2024 was NT$-26 Mil. Its Operating Income for the months ended in Jun. 2024 was NT$159 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was NT$2,104 Mil.

Jhu Jian Catering Co's Interest Coverage for the quarter that ended in Jun. 2024 is

Interest Coverage=-1*Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*158.617/-25.892
=6.13

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Jhu Jian Catering Co's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(355.548 + 2104.355) / 11433.208
=0.22

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Jhu Jian Catering Co has a Z-score of 3.20, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.2 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Jhu Jian Catering Co  (ROCO:7723) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Jhu Jian Catering Co has the Financial Strength Rank of 4.


Jhu Jian Catering Co Financial Strength Related Terms

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Jhu Jian Catering Co Business Description

Traded in Other Exchanges
N/A
Address
4th Floor, No. 455, Chongde 9th Road, Beitun District, Taichung, TWN
Jhu Jian Catering Co Ltd is a company that is a chain catering brand with seafood suppliers, integrating production and sales with Xinfeng Xianhui Aquatic Products to provide a fresh and high-quality seafood supply chain. they choose high-quality and complete food suppliers to provide a variety of selected ingredients that meet food safety standards, Where they combine the concept of "extracting the essence of various ingredients from hundreds of flavors to integrate the characteristics of the ingredients into soups and dishes.

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